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State of play Kerala: Walking the tightrope on the liquor policy


Kerala has one of the highest per capita alcohol consumption rates in the country. The liquor policy has always been a politically turbulent and socially sensitive subject. File
| Photo Credit: The Hindu

A leaked voice message from a WhatsApp group of members of the Federation of Kerala Hotels Association (FKHA), a powerful and rich lobby of bar owners in Kerala, has sparked a controversy in the State.

The voice note, recorded by an FKHA office bearer, purportedly urged bar owners to pool money to influence the Left Democratic Front (LDF) government’s upcoming liquor policy. The message surfaced days after the Kerala Tourism Department held a routine online meeting of stakeholders, including hotel, resort, and houseboat owners.

The Leader of the Opposition, V.D. Satheesan, who belongs to the Congress, accused the government of dangling the prospect of lifting dry days and extending bar timings in exchange for sizeable backhanders from the liquor lobby. He alleged that the FKHA had sought ₹2.5 lakh each from its 801 members to raise ₹20 crore for the ruling Communist Party of India (Marxist). Mr. Satheesan said corruption, and not statecraft or public good, informed the LDF’s policymaking. He also demanded the resignation of Excise Minister M.B. Rajesh and Tourism Minister Mohammad Riyaz, who, he alleged, were at the centre of the plot.

Youth Congress workers marched to Mr. Rajesh’s official residence holding a cash counting machine and demanded his resignation. The same machine was used by the LDF in 2016 as a metaphor for liquor policy-related “corruption” in the United Democratic Front (UDF) government led by Oommen Chandy. The LDF’s agitation then cost two UDF ministers their Cabinet berths, though the consequent anti-corruption inquiry came to nought.

The current controversy has therefore evoked a sense of political déjà vu. The UDF is all set to launch anti-government protests, would be reminiscent of the restive days of 2016.

Denying the accusations, the State government says it perceives a political plot to undermine the public’s trust in the LDF’s policymaking. The police have opened a probe to establish the motive for the FKHA’s fundraising bid.

The FKHA has stated that it sought to raise funds from members to build an office in Thiruvananthapuram and not to bribe the government.

CPI(M) State Secretary M.V. Govindan has said that tweaking the liquor policy was not on the LDF’s agenda. “Neither the government nor the party has broached the subject. The UDF is towing a conspiracist line,” he said.

Kerala has one of the highest per capita alcohol consumption rates in the country. The liquor policy has always been a politically turbulent and socially sensitive subject. On the one hand, the Church and Muslim social organisations have always called for a puritanical liquor policy aimed at whittling alcohol availability and putting the State on a path to total prohibition.


Also read | Crime Branch interrogates bar owner accused of initiating ‘bribe collection’ for a permissive liquor policy in Kerala

On the other, the hospitality industry has demanded a more liberal approach. The software industry has long complained that the lack of socialising venues with alcohol in Kerala makes the State a disappointing job destination for techies. The government’s recent decision to allow the sale of legal alcohol in designated areas in Information Technology parks has drawn criticism from powerful prohibitionist groups.

In order to balance the demands of the two groups, the government has so far walked a tightrope.

Kerala has grappled with the problem of alcohol abuse for years. Experts have attributed the State’s relatively high suicide rate, domestic violence, street crimes, and divorce rate to substance abuse and addiction. Nevertheless, unreasonably restricting the availability of legal liquor for political reasons, like prohibition, has a proven history of failure globally. Kerala has been no exception. In 1997, for instance, the Congress government banned the sale of arrack. This spawned a liquor mafia that smuggled in spirit from neighbouring States.

The government can also ill afford to ignore fiscal realities. Tourism is a significant revenue earner for Kerala. The hospitality industry has argued that the “unreasonable restrictions” on liquor sales and bar timings have pushed MICE (meetings, incentives, conferences, and exhibitions) to other “tourist-friendly” destinations like Sri Lanka and Goa. The LDF government would do well to forge a political and social consensus before attempting to tweak the current liquor policy, if at all.



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